OFFICE OF JUSTICE PROGRAMS TECHNICAL ASSISTANCE AND TRAINING PROGRAM EXECUTIVE SUMMARY

Transcription

1 OFFICE OF JUSTICE PROGRAMS TECHNICAL ASSISTANCE AND TRAINING PROGRAM EXECUTIVE SUMMARY The Office of the Inspector General has completed an audit of the Office of Justice Programs (OJP s) Technical Assistance and Training Program (TA&T). The TA&T is the product of many OJP bureaus and program offices and includes a wide range of funding sources, types of services, and products. For example, the OJP s Bureau of Justice Assistance (BJA) provides an array of technical assistance and training programs to provide criminal justice practitioners with information on effective programs and practices and to address new criminal justice issues. The mission of the OJP s Office of Juvenile Justice and Delinquency Prevention (OJJDP) is to strengthen the juvenile justice system by providing training, technical assistance, and information on trends, new approaches, and innovative techniques to juvenile courts and court personnel; law enforcement; detention and corrections; youth service providers; and child advocacy organizations. Grantees include universities, non-profit organizations, states, and municipalities. We reviewed the OJP s administration of $312.5 million in TA&T grant awards. We audited 21 of the 158 TA&T grants awarded by the OJP between fiscal year (FY) 1995 and FY These 21 grants totaled $77.7 million, or 25 percent of the $312.5 million in total TA&T grant dollars awarded. 1 Our objectives were to: (1) determine if the OJP implemented internal control measures to ensure accurate financial reporting by grantees; and (2) assess the OJP s monitoring and evaluation of grant objectives. Most TA&T funding is awarded through discretionary grants. 2 However, the OJP may determine that funding from existing block and formula grants can be used for technical assistance. 3 In addition, Congress 1 The overall TA&T universe is 1,145 grants totaling $1.4 billion during this time period. However, these figures include grants that have multiple purposes. We limited our audit to grants that were exclusively for TA&T. 2 Discretionary grants are awarded on a competitive basis to public and private agencies, private non-profit organizations, and universities. 3 Block grant funding is given to a state, and then allocated to local organizations through sub-grants. Formula grants are awarded to state and local governments based on a pre-determined formula using, for example, a jurisdiction s crime rate, population, or other factors. - i-

2 may legislate that funds from block and formula grants be set aside for specific TA&T programs. TA&T grants are designed in accordance with the specific mandates associated with each OJP bureau or program office, and can be customized to meet the specific needs of a state or local community. TA&T grants can also address a broad array of topics, such as providing training and technical assistance to drug courts, paid work and job skills training programs and develop standards and training for School Resource Officers (See Appendices V and VI for examples). Although many OJP bureaus and program offices awarded TA&T grants, the OJJDP and the BJA awarded 92.5 percent of the total TA&T grant dollars. Therefore, we focused our audit on the grant monitoring efforts of these two bureaus. Our audit of various headquarters functions at the OJP and audits of 21 individual TA&T grants disclosed the following deficiencies in the OJP s administration of TA&T grants: Program and financial monitoring by BJA and OJJDP were not conducted consistently, and there was little coordination between the two areas. We identified approximately $5.2 million in questioned costs and funds that could be put to better use. 4 In addition, a formal investigation was launched, based on our audit results, to examine one grantee s expenditures and business practices. OJP grant managers did not ensure that all required Financial Status Reports and Progress Reports were submitted timely and accurately, and other monitoring and closeout requirements were not being adhered to. Communication between grantees and grant managers was not documented in accordance with OJP requirements. 4 The Inspector General Act of 1978, as amended, contains our reporting requirements for questioned costs and funds to better use. However, not all findings are dollar-related. See Appendices II, III, and IV for a breakdown of our dollar-related findings and for definitions of questioned costs and fund to better use. - ii-

3 The OJP did not play a role in developing grantees performance or outcome measures, nor did it have specific requirements that grantees could follow in developing such measures. As a result, we were unable to assess the impact of the grants to determine whether they were achieving their intended purposes. While the OJP has mandated that the Grants Management System (GMS) be used by its various components, several of the modules of the GMS were not fully operational during our audit period. For example, the Financial Status Reports were not required to be filed electronically until April The enhanced GMS, which will include all modules to manage grants, is scheduled to be fully operational by September 30, Based on these findings, we recommend that the OJP ensure that grant managers receive annual training to ensure that they are knowledgeable of OJP s requirements governing the submission of timely and accurate reports, allowable costs, grant monitoring requirements, and grant closeout procedures. We also recommend that the OJP ensure the complete implementation of its automated system for managing grants. In addition, we recommend that the OJP bureaus work with grantees to develop performance or outcome measures to assess the effectiveness of TA&T grants. The details of our work are discussed in the Findings and Recommendations section of the report. Our audit objectives, scope, and methodology are contained in Appendix I. - iii -

4 TABLE OF CONTENTS Page INTRODUCTION...1 Background...1 OJP Reorganization...2 The OJP s Technical Assistance and Training Program...4 The Office of Juvenile Justice and Delinquency Prevention...6 The Bureau of Justice Assistance...7 Grant Monitoring...8 Prior Reviews...9 FINDINGS AND RECOMMENDATIONS GRANT MONITORING The OJP s Monitoring of 21 Selected Grants Results of the 21 Grant Audits Grant Expenditures Financial Status and Progress Reports Recommendations PROGRAM PERFORMANCE Grantee Evaluation Methods The OJP s Program Evaluation Efforts Recommendation STATEMENT ON MANAGEMENT CONTROLS STATEMENT ON COMPLIANCE WITH LAWS AND REGULATIONS APPENDICES: I. OBJECTIVES, SCOPE, AND METHODOLOGY II. SUMMARY OF DOLLAR-RELATED FINDINGS III. TECHNICAL ASSISTANCE AND TRAINING GRANTS SUMMARY OF AUDIT FINDINGS BJA... 30

5 IV. TECHNICAL ASSISTANCE AND TRAINING GRANTS SUMMARY OF AUDIT FINDINGS OJJDP V. TECHNICAL ASSISTANCE AND TRAINING GRANTS SUMMARY OF PERFORMANCE MEASURES BJA VI. VII. VIII. TECHNICAL ASSISTANCE AND TRAINING GRANTS SUMMARY OF PERFORMANCE MEASURES OJJDP DESCRIPTIONS OF THE OFFICE OF JUSTICE PROGRAMS BUREAUS, PROGRAM OFFICES, AND SUPPORT OFFICES DESCRIPTIONS OF MAJOR GRANTS AWARDED BY THE OFFICE OF JUSTICE PROGRAMS IX. ACRONYMS AND ABBREVIATIONS X. OFFICE OF JUSTICE PROGRAMS TECHNICAL ASSISTANCE AND TRAINING GRANTS AUDITED BJA XI. OFFICE OF JUSTICE PROGRAMS TECHNICAL ASSISTANCE AND TRAINING GRANTS AUDITED OJJDP XII. ADDITIONAL DETAILS ON GRANT-MONITORING ACTIVITIES XIII. GRANTEE RESPONSE XIV. OFFICE OF THE INSPECTOR GENERAL, AUDIT DIVISION, ANALYSIS AND SUMMARY OF ACTIONS NECESSARY TO CLOSE THE REPORT... 79

6 OFFICE OF JUSTICE PROGRAMS TECHNICAL ASSISTANCE AND TRAINING PROGRAM INTRODUCTION The Office of the Inspector General (OIG) has completed an audit of the Office of Justice Programs (OJP s) Technical Assistance and Training Program (TA&T). The objectives of the audit were to: (1) determine if the OJP implemented internal control measures to ensure accurate financial reporting by grantees; and (2) assess the OJP s monitoring and evaluation of grant objectives. Our audit included an audit of various headquarters functions at the OJP, and audits of 21 individual TA&T grants. We issued separate reports on 20 of the 21 grant audits. One grant report has not been issued yet because the grantee is the subject of an ongoing OIG investigation. This report consolidates the principal findings of the 21 grant audits with results of our work at the OJP headquarters. Background The OJP manages the Department of Justice s multi-faceted grant program. The OJP reported that since its inception in 1984, it has awarded more than 80,000 grants totaling more than $39 billion, for a wide variety of programs to prevent and control crime (See Appendix VIII for details). For fiscal year (FY) 2004, the OJP had a budget of $3.3 billion. The OJP is led by the Assistant Attorney General (AAG) for Justice Programs, with a senior management team comprised of the Deputy AAG and five bureau heads. The OJP s five bureaus and two program offices are the principal grant-making entities within the OJP. The five bureaus are: (1) the Bureau of Justice Assistance (BJA); (2) the Office of Juvenile Justice and Delinquency Prevention (OJJDP); (3) the Bureau of Justice Statistics (BJS); (4) the National Institute of Justice (NIJ); and (5) the Office for Victims of Crime (OVC). The two program offices include the Office of the Police Corps and Law Enforcement Education and the Community Capacity Development Office. In addition to the bureaus and program offices, nine other OJP offices provide agency-wide support. They are the Office for Civil Rights; Office of the General Counsel; Office of Communications; Office of the Chief Information Officer; and Office of Management and Administration (OMA). Under the OMA are the Office of Administration, Office of Budget and Management Services, Office of the Comptroller, and the Equal Opportunity Office

7 Programs developed and funded by OJP bureaus and offices seek to control drug abuse and trafficking; reduce and prevent crime; rehabilitate neighborhoods; improve the administration of justice; meet the needs of crime victims; and address problems such as gang violence, prison overcrowding, juvenile crime, and white-collar crime. Generally, the OJP bureaus and program offices award two types of grants - formula grants and discretionary grants. Formula grants are awarded to state and local governments based on a pre-determined formula using, for example, a jurisdiction's crime rate, population, or other such factors. The states are generally required to pass through a significant portion of the formula awards to local agencies and other organizations in the form of sub-grants. Formula grant programs in areas such as drug control, juvenile justice, victims compensation, and victims assistance are administered by state agencies designated by each state's governor. Block grant funding is given to a state by the federal government to run programs within defined guidelines. The states generally allocate these funds to local organizations through sub-grants. Discretionary grants are awarded on a competitive basis to public and private agencies, private non-profit organizations, and universities. However, certain discretionary grants are awarded on a non-competitive basis, as required by congressionally earmarked funding. Discretionary grant funds are announced in the Federal Register or through program solicitations on OJP websites. Grant applications are made directly to the OJP s sponsoring bureau or program office. The bureaus and program offices, together with OJP s Office of the Comptroller, are responsible for awarding and monitoring discretionary grants to ensure that they are being implemented as intended, responsive to grant goals and objectives, and compliant with statutory regulations and other policy guidelines. OJP Reorganization In 2002, Congress approved a reorganization plan for the OJP. The plan sought to: (a) improve responsiveness, assistance, and accountability to all customers; (b) eliminate duplication and overlap; (c) ensure measurable grant and program outcomes; and (d) enhance communication, cooperation, coordination, and efficiency. The plan had eight objectives: The OJP should have a strategic plan that reflects statutory requirements and the mission and goals of the President and the Attorney General

8 The statutes governing the OJP bureaus and program offices should be amended to provide that all authority resides in the Attorney General. Management policies and procedures should be standardized throughout the OJP. An OJP-wide grants management system should be instituted. The OJP should be more responsive to the needs and questions of grantees. Centralized communication should be established at the OJP. Coordination of legislative, statutory, and regulatory activities and reviews should be improved. The OJP should consolidate and coordinate currently overlapping functions. To accomplish the eight objectives, the OJP planned to implement the restructuring in phases. The reorganization left the OJP s five bureaus intact, established two program offices, transferred certain offices within the OJP, combined four support offices into a new Office of Management and Administration, and transferred two offices out of the OJP. 5 The OJP believes that its new organizational structure, some of which has already been implemented, should improve the efficiency and effectiveness of the grant management program. Specifically, it believes the reduction and realignment of program and support offices should improve communication and cooperation among the OJP components. 5 As a result of congressional legislation in 2002, the name of the Violence Against Women Office was changed to the Office on Violence Against Women. The Office now reports to the Attorney General through the Office of the Associate Attorney General. The Office of Domestic Preparedness was transferred to the Department of Homeland Security

9 The OJP s current organizational structure is shown on the following chart. 6 Organization of the Office Of Justice Programs 7 UNITED STATES DEPARTMENT OF JUSTICE ATTORNEY GENERAL DEPUTY ATTORNEY GENERAL ASSOCIATE ATTORNEY GENERAL OFFICE OF JUSTICE PROGRAMS ASSISTANT ATTORNEY GENERAL BUREAU OF JUSTICE ASSISTANCE BUREAU OF JUSTICE STATISTICS NATIONAL INSTITUTE OF JUSTICE OFFICE OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION OFFICE FOR VICTIMS OF CRIME OFFCE OF THE POLICE CORPS AND LAW ENFORCEMENT EDUCATION COMMUNITY CAPACITY DEVELOPMENT OFFICE AMERICAN INDIAN AND ALASKAN NATIVE DESK OFFICE OF WEED AND SEED OFFICE FOR CIVIL RIGHTS OFFICE OF GENERAL COUNSEL OFFICE OF COMMUNICATIONS CHIEF INFORMATION OFFICER OFFICE OF MANAGEMENT AND ADMINISTRATION EQUAL EMPLOYMENT OPPORTUNITY OFFICE Source: Office of Justice Programs The OJP s Technical Assistance and Training Program One of the OJP s major functions is to implement national and multistate programs, provide technical assistance and training, and establish demonstration programs to assist state, local, and tribal governments and community groups in: reducing crime; enforcing state and local drug laws; and improving the function of the criminal justice system. 8 Appendix VII. 6 For a description of the OJP s bureaus, program offices, and support offices, see 7 Effective March 1, Department of Justice: Organization, Mission and Functions Manual, March

10 During FY 2003, the OJP awarded $312.5 million in grants exclusively for TA&T programs. 9 As of April 28, 2004, the OJP had awarded $126.9 million in TA&T grants for FY Funding for such grants generally is awarded through discretionary grants. However, the OJP may determine, under certain conditions, that funding for existing block and formula grants can be used for TA&T programs. Congress also may mandate that funds from block and formula grants be set aside for TA&T programs. TA&T grants are designed in accordance with the specific mandates associated with each bureau or program office, and can be customized to meet the specific needs of a state or local community. TA&T grants can also address a variety of topics. For example: The BJA provides a wide array of training and technical assistance programs to provide criminal justice practitioners with information on effective programs and practices, and to address new criminal justice issues. The OJJDP seeks to strengthen the essential components of the juvenile justice system by providing training, technical assistance, and information on trends, new approaches, and innovative techniques to courts; court personnel; law enforcement; detention and corrections; youth service providers; and child advocacy organizations. The Office of Weed and Seed 10 provides training and technical assistance to communities in an attempt to strengthen program implementation 11 and strategy development, as well as to increase information sharing among the sites nationwide. The OVC s training and technical assistance activities are intended to expand and enhance the coordination and delivery of services to crime victims; improve the criminal justice and social services 9 This represented approximately 22 percent of the $1.4 billion of all grants that included an aspect of TA&T. While the universe included grants that were awarded for multiple purposes, our audit focused on grants that were awarded solely for TA&T projects. 10 This office is located within the Community Capacity Development Office. 11 The Weed and Seed Program seeks to prevent and reduce violent crime in targeted neighborhoods. The program proposes to weed out crime in these neighborhoods and seed them with a variety of programs to prevent crime from recurring

11 system response to victims of crime; and support the development and distribution of policies, procedures, and protocols in the treatment and handling of crime victims by Native American tribes, state and local governments, and private non-profit organizations. Because the OJJDP and the BJA awarded $289 million, or 92.5 percent of the $312.5 million in TA&T grants during FY 2003, our audit focused on the administration and evaluation of TA&T grants by those two bureaus. Percentage of Fiscal Year 2003 Technical Assistance and Training Dollars by OJP Bureau 70.00% 64.39% 60.00% Percentage of Grant Dollars 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 28.09% 3.06% 2.97% 1.49% OJJDP BJA BJS OVC EOWS Bureaus Dollar % Source: The Office of Justice Programs Office of Budget and Management Services The Office of Juvenile Justice and Delinquency Prevention The OJJDP supports states, local communities, and tribal jurisdictions in their efforts to develop and implement effective programs for juveniles. According to OJJDP, it also strives to enable the juvenile justice system to better protect public safety, hold offenders accountable, and provide services tailored to the needs of youth and their families. The OJJDP sponsors numerous research, program, and training initiatives; develops priorities and goals, and sets policies to guide federal juvenile justice issues; disseminates information about juvenile justice - 6 -

12 issues; and awards funds to states to support local programming nationwide through its four organizational components. To carry out its mission, the OJJDP: Analyzes the training needs of professionals and volunteers working in the juvenile justice system, and develops and implements curriculums to meet these needs; Conducts training programs and technical assistance for federal, state, and local governments; private agencies; professionals; volunteers; and others who serve the juvenile justice system, including law enforcement, the judiciary, corrections, education, and community organizations; and Provides needs assessments for community planning concerning gang and drug problems in order to develop effective intervention strategies. The Bureau of Justice Assistance The BJA s mission is to provide leadership and assistance in support of local criminal justice strategies to achieve safe communities. According to BJA, its overall goals are to: (1) reduce and prevent crime, violence, and drug abuse; and (2) improve the functioning of the criminal justice system. To achieve these goals, BJA programs emphasize enhanced coordination and cooperation of federal, state, and local efforts. The BJA's objectives in support of these goals are to: Encourage the development and implementation of comprehensive strategies to reduce and prevent crime and violence; Encourage the active participation of community organizations and citizens in efforts to prevent crime, drug abuse, and violence; Provide technical assistance and training in support of efforts to prevent crime, drug abuse, and violence at the national, state, and local levels; Reduce the availability of illegal weapons and develop strategies to address violence in our communities; Enhance the capacity of law enforcement agencies to reduce crime; - 7 -

13 Improve the effectiveness and efficiency of all aspects of the adjudication process, including indigent defense services; Assist states in freeing prison space for serious and violent offenders through the design and implementation of effective correctional options for non-violent offenders; Enhance the ability of criminal justice agencies to access and use new information technologies; and Encourage and support evaluation of the effectiveness of funded programs and dissemination of program results. The BJA has three primary components: Policy, Programs, and Planning. The Policy Office provides national leadership in criminal justice policy, training, and technical assistance to further the administration of justice. It also acts as a liaison to national organizations that partner with the BJA to set policy and help disseminate information on best and promising practices. The Programs Office coordinates and administers all state and local grant programs and acts as the BJA's direct line of communication to states, territories, and tribal governments by providing assistance and coordinating resources. The Planning Office coordinates the planning, communications, and budget formulation and execution; provides overall BJA-wide coordination; and supports streamlining efforts. Grant Monitoring The OJP s Office of the Comptroller (OC) and program managers in each of the five bureaus have grant-monitoring responsibilities. The three general categories of monitoring activities are: 12 Performance. This type of monitoring addresses the content and substance of the program. It is a qualitative review to determine grant performance, innovation, and contributions to the field. It assesses whether grant activities are consistent with the implementation plan, responsive to grant goals and objectives, and compliant with statutory regulations and other policy guidelines. Performance monitoring also involves assessing technical assistance needs and observing implementation of projects. 12 See Appendix XII for additional details on grant-monitoring activities

14 Compliance. This type of monitoring is coordinated between grant managers and the OC and involves administrative monitoring activities such as addressing compliance with the grant terms and conditions, reporting requirements, and completeness of documentation in the official grant file. Financial. This type of monitoring is conducted by the OC but also involves coordination with the grant managers. It ensures compliance with financial guidelines and general accounting practices, and provides technical assistance to grantees on financial issues. The fiscal management of grant expenditures is reviewed as well. Prior Reviews Two prior reports by the Government Accountability Office (GAO) reviewed the OJP s grant-monitoring activities: Grants Management: Despite Efforts to Improve Weed and Seed Program Management, Challenges Remain, GAO , March Juvenile Justice: Better Documentation of Discretionary Grant Monitoring is Needed, GAO-02-65, October Although these reports were specific to bureaus within the OJP, they contained findings similar to those of our audit, such as: Monitoring activities are insufficiently performed by grant managers; Management cannot rely on supervisory oversight of grant managers to ensure that monitoring is being performed as required; the requirements as stated in the staff performance work plans are too general to provide a means for assessing the monitoring activities of the grant managers; Some grant files did not contain the required closeout materials; Outcome performance measures had not been developed to track progress toward accomplishment of program goals

15 FINDINGS AND RECOMMENDATIONS 1. GRANT MONITORING Our audits of 21 TA&T grants disclosed weaknesses in the OJP s monitoring efforts. Grantees were reimbursed for unallowable and unsupported costs. OJP grant managers did not ensure that all required Financial Status Reports and Progress Reports were submitted timely and other monitoring and closeout requirements were not observed. In total, we identified approximately $5.2 million in questioned costs and funds that could be put to better use of the nearly $78 million in grants examined. 13 We attribute these weaknesses to: (1) the lack of training for OJP grant managers in the areas of timely and accurate report submission, allowable costs, grant monitoring and grant closeout procedures, and (2) the OJP s automated system for grant management not functioning at full capacity. In addition, a criminal investigation was initiated by the OIG, based on our audit results, to examine the expenditures and business practices of one grantee. The OJP has awarded some grants strictly for TA&T purposes and others that combined TA&T with other objectives. Our audits examined only grants that were exclusively for TA&T; the universe of such grants included 158 grants totaling $312.5 million. Because the BJA and the OJJDP awarded 92.5 percent of the total amount, or $289 million, we concentrated our audit on grants awarded by those two bureaus. We judgmentally selected 21 grants for audit, totaling $77.7 million or 25 percent of the universe of funding. 14 Our audit sample included 10 BJA grants totaling $28.1 million and 11 OJJDP grants totaling $49.6 million with grant award dates ranging from FY 1995 to FY We examined the monitoring efforts of the OJP and the affected bureaus and concluded that, for all of the grants in our sample, those monitoring efforts were deficient. 13 See Appendices II, III, and IV for a breakdown of our dollar-related findings and for definitions of questioned costs and funds to better use. 14 Our criteria for selection were: (a) the grant was awarded solely for the purpose of providing TA&T; (b) the awarding bureau was either the BJA or the OJJDP; (c) the grant amount was over $1 million; (d) the sample represented a range of grant periods; and (e) geographic distribution

16 The OJP s Monitoring of 21 Selected Grants Grant monitoring is an essential management tool to ensure that grantees are properly expending funds and that the objectives of the grant program are being implemented. Based on the results of our 21 grant audits, we concluded that weaknesses in the OJP s monitoring had permitted a wide range of discrepancies to occur among grantees. In fact, for the 21 grants that we audited, grant manager performed site visits for only 8 grantees. One weakness was the lack of documentation of monitoring. We reviewed the program manager s grant files for each of the 21 grants that were audited. The grant files generally contained monitoring plans but the grant managers did not consistently follow OJP requirements and document their monitoring efforts. For the closed grants in our sample, one did not contain documentation showing compliance with closeout procedures. 15 According to the OJP Grant Managers Manual, the grant managers are to notify the grantee of closeout procedures 30 to 60 days before the end of the grant. However, the grant files that we reviewed did not contain any evidence that this requirement was fulfilled. According to the OJP Grant Managers Manual, the bureau or program office and the Office of the Comptroller (OC) should coordinate activities throughout the monitoring process by preparing an annual monitoring plan, scheduling site visits, and conducting team monitoring or joint site visits. However, when we reviewed both the OC s grant files and the grant managers files, we found little evidence that such coordination actually occurs. In addition, our interviews with the grant managers disclosed that except for the notification letter they receive when the OC schedules a site visit for financial monitoring, there is very little coordination between the program offices and the OC. Despite the lack of evidence that grant managers were complying fully with the established monitoring plans, we did find that some grant monitoring occurred. For example, the files contained evidence that communication occurred between grantees and grant managers in the form 15 Closeout of a grant is a process by which the OJP determines that the grantee and the OJP have completed all applicable administrative actions and all required work on the project. Upon expiration of a grant, the OJP grant manager and the OC are responsible for timely and proper closing of the grant. The grantee whose files did not contain documentation of compliance with closeout procedures is the Search Group, Inc. The files for three additional grantees did not contain closeout documentation but the grantees were subsequently awarded grant extensions

17 of reports, faxes and letters, and oral and communications on specific issues and problems or requests for information. However, much of the communication between grantees and grant managers was not documented in accordance with OJP requirements. The potential adverse effects of the weaknesses in the OJP s monitoring and oversight of grantees are demonstrated in one particular audit. We found that the grantee s management of grant funds was inadequate, the grantee maintained poor accounting records, and the grantee generally failed to exercise oversight over the sub-grantees. In addition, the grantee appeared to lack the requisite knowledge to administer the grant and to train other organizations as required by the terms of the grant. Examples of findings from this grant audit include: 16 The grantee conducted prohibited lobbying activities using grant funds. One of the grantee s selection factors for sub-grantees was the connection between the sub-grantees and members of Congress, even though the sub-grants were supposed to be awarded competitively. The grantee billed the OJP for salary costs never paid to employees. Although the grantee budgeted for travel and staff expenses for site visits to its 36 sub-grantees, it did not adequately perform this task. We found that 67 percent of the site visits conducted were made to 6 sub-grantees in the grantee s local area and 6 other sub-grantees were never visited. The grantee charged unallowable costs to the grant, such as hotel in-room movie rentals, taxi cabs to restaurants, excessive telephone usage ($500 over a 2-day period), and, in one case, the replacement cost for a lost cell phone owned by the daughter of the project director. The grantee charged social gatherings such as a Christmas party to the grant, and labeled a sunset cruise on a yacht as a training 16 The results of our audit of this BJA grant caused us to question the entire grant ($3,162,580 over the life of the grant, April 6, 2000, through December 31, 2003), prompted an investigation by the OIG Investigations Division, and resulted in a suspension of grant funding by the OJP

18 meeting for reimbursement purposes; in addition, alcohol was served at both the Christmas party and on the cruise. The grantee failed to properly monitor sub-grantees, maintain appropriate documentation, and take action to recover funds when sub-grantees failed to perform. The grantee s files were in complete disarray. In our opinion, this grantee exhibited significant internal control weaknesses and poor fiscal management, and did not effectively or adequately manage the grant. We discussed this grantee with BJA officials and learned that they had not conducted a site visit during at least the past ten years, nor had the OC conducted a financial review of the grantee during the same period. Further, the BJA officials stated that they assumed the grantee was knowledgeable of grant requirements because, they have been receiving grants for a long time. In addition to the preceding grantee s poor grant management and oversight efforts, we found that BJA had a general lack of awareness related to the actions of other sub-grantees. In one instance, after we learned that a significant number of supporting documents were missing for a sub-grantee, we found that the executive director of that organization had recently been terminated for malfeasance, including destruction or removal of accounting and administrative records. While the grantee was aware of the termination, it did not take action to obtain supporting documentation for the sub-grantee s expenditures. The grantee was aware of problems surrounding this particular sub-grantee, but failed to provide adequate oversight. In another instance involving alleged embezzlement by a subgrantee, BJA failed to follow-up to determine whether grant funds were at risk after it was notified of the alleged embezzlement. Results of the 21 Grant Audits We performed the 21 individual grant audits to determine whether reimbursements for costs claimed under the grants were allowable, supported, and in accordance with applicable laws, regulations, guidelines, and the terms and conditions of the grants. The audits resulted in 8 BJA dollar-related findings and $3.2 million in related questioned costs, and 26 OJJDP dollar-related findings with questioned costs and funds that could be

19 put to better use amounting to $2 million. Summaries of those questioned costs and findings are shown on the following tables (See Appendices III and IV for additional details). Summary of Questioned Costs and Findings BJA Grants Grantee/Grant Number American Prosecutors Research Institute (2000-PP-CX-K001) Award Amount Questioned Costs 17 Number of Dollar- Related Findings $ 2,061,559 0 Search Group, Inc. (1999-MU-MU-0005) 2,500,000 $ 29,602 2 National Council of Juvenile & Family Court Judges (98-MU-VX-K016) National American Indian Court Judges Association (2000-IC-VX-0026) Fund for the City of New York (98-DC-VX- K007) 2,904, ,442,112 31, ,839,269 0 Doe Fund, Inc. (2001-DD-BX-0055) 1,897,800 24,832 1 Grantee s name withheld due to ongoing investigation. 3,162,580 3,162,580 Strategic Information Technology Center (University of Arkansas #1) (1999-LD-VX- 0001) 6,700,000 School Violence Resource Center (University of Arkansas #2) (2000-DD-VX-0026) 3,995,600 Inter-Tribal Integrated Justice Pilot Project (University of Arkansas #3) (2001-LD-BX- K005) 1,562, Subtotal BJA $28,066,475 $3,248,935 8 Source: Office of the Inspector General Grant Audit Reports 17 Questioned costs are expenditures that do not comply with legal, regulatory, or contractual requirements, or are not supported by adequate documentation at the time of the audit, or are unnecessary or unreasonable. Questioned costs may be remedied by offset, waiver, recovery of funds, or the provision of supporting documentation. investigation. 18 The number of dollar-related findings is not yet final given the ongoing

20 Summary of Questioned Costs and Findings OJJDP Grants Grantee/Grant Number Award Amount Questioned Costs and Funds to Better Use 19 Number of Dollar- Related Findings National Center for Missing and Exploited Children (2000-MC-CX-K021) $ 10,993,363 0 Development Services Group, Inc. (1999-JB-VX-K001) 5,377,201 0 Florida Atlantic University (95-JN-FX-0024) 2,018,869 $ 199,221 4 (FBU) 20,419 1 Boys and Girls Clubs of America (98-JN-FX-0007) 9,275, ,885 5 Constitutional Rights Foundation (2001-JS-FX-008) 1,066,400 0 National Court Appointed Special Advocate Association (2002-CH-BX-K001) 3,823,500 0 Children s Advocacy Center for the Pikes Peak Region (2001-MU-MU-K002) 1,124,343 17,975 3 Suffolk University (1999-JS-FX-0001) 5,060,685 25,279 2 (FBU) 68,905 1 Children s Hospital (2000-CI-FX-K001) 1,286, ,484 3 Fox Valley Technical College #1 (98-MC-CX-K010) 7,263, ,090 3 Fox Valley Technical College #2 (98-MC-CX-K003) 2,298,701 15,768 4 Subtotal OJJDP $ 49,587,536 $ 1,914, Total BJA and OJJDP Questioned Costs and Funds to Better Use $ 77,654,011 $ 5,162, Source: Office of the Inspector General Grant Audit Reports 19 Funds to Better Use are future funds that could be used more efficiently if management took actions to implement and complete audit recommendations

21 Grant Expenditures We found many violations of essential grant and accounting requirements in our audits of the 21 grants (See Appendix II for additional details). For example: Eight grantees claimed and were reimbursed for costs that were not supported by their accounting records ($1,534,649); Two grantees claimed and were reimbursed for expenditures that were not included in the approved grant budget ($178,405); Five grantees claimed and were reimbursed for costs that were not allowed under the grant ($123,322); Suffolk University had program income of $68,905 that was not used to reduce future draw downs or returned to the federal government; Children s Hospital drew down excess funds ($30,595) and transferred excessive funds between budget categories without written approval from the OJP ($59,903); Our 21 grant audits also resulted in a number of significant non-dollarrelated findings. 20 For example: The Fund for the City of New York incorrectly budgeted certain costs, e.g., compensated employee leave; The internal controls over authorization and approval of grant expenditures at the Doe Fund, Inc. were inadequate; and The University of Arkansas did not maintain complete and accurate inventory records for property purchased under grants to its Strategic Information Technology Center and its Inter-Tribal Integrated Pilot Justice Project. However, in our judgment the most significant non-dollar-related findings involved the timeliness and accuracy of grantee Financial Status and 20 See Appendix III for details regarding the following grantees: Fund for the City of New York; Doe Fund, Inc.; and University of Arkansas grants #1 and #

22 Progress Reports. A summary of findings pertaining to this area is described in the following section. Financial Status and Progress Reports Financial Status Reports According to the OJP Financial Guide, each grantee is required to submit a Financial Status Report (FSR) to the awarding agency within 45 days of the end of each calendar quarter. We reviewed the FSRs throughout the grant periods for the audited grants and determined that 10 of the grantees submitted a total of 22 late and 10 inaccurate quarterly FSRs. The untimely reports were submitted as many as 60 days after the due date

23 Untimely and/or Inaccurate Financial Status Reports Grantee Number of Reports Required Number of Late Reports Number of Inaccurate Reports National American Indian Court Judges Association Fund for the City of New York Doe Fund, Inc School Violence Resource Center (University of Arkansas) Florida Atlantic University Boys and Girls Clubs of America Children s Advocacy Center for the Pikes Peak Region Suffolk University Children s Hospital Grantee s name withheld due to ongoing investigation Total Source: Office of the Inspector General Grant Audit Reports Progress Reports According to the OJP Financial Guide, Progress Reports must be submitted within 30 days after the end of the reporting periods (June 30 and December 31). Progress Reports are supposed to describe in a narrative fashion information relevant to the performance of a plan, program, or project. We reviewed the Progress Reports throughout the grant periods for the 21 audited grants and determined that 13 grantees submitted a total of 43 reports late. The untimely reports were submitted as many as 170 days after the due date. In addition, 10 reports for these grantees could not be located. 21 We determined that the grantee failed to report program income received from the grant on the FSRs as required. However, we could not determine with certainty when the grantee should have started to report program income. 22 The untimely reports were submitted 42 and 57 days after the due date. The OJP failed to date-stamp 11 of the reports when received; consequently, we could not determine the timeliness of their submission

24 Untimely or Missing Progress Reports Grantee Number of Reports Required Number of Late Reports Number of Missing Reports National Council of Juvenile and Family Court Judges National American Indian Court Judges Association Fund for the City of New York Doe Fund, Inc Grantee s name withheld due to ongoing investigation School Violence Resource Center (University of Arkansas) Inter-Tribal Integrated Justice Pilot Project (University of Arkansas) Development Services Group, Inc Florida Atlantic University Boys and Girls Clubs of America Constitutional Rights Foundation Children s Advocacy Center for the Pikes Peak Region Suffolk University Children s Hospital Total Source: Office of the Inspector General Grant Audit Reports 23 One of the four Progress Reports was submitted 170 days after the due date. 24 We concluded that at least three of the nine progress reports were filed late and it is possible that the remaining six were also late. Because of the incomplete records on the part of both the Fund and the OJP, we could not determine whether the filing of seven reports on October 8, 2002, was the Fund s first or second submission for these reports. 25 The untimely report was submitted 75 days late. Three other reports were not date-stamped by the OJP; therefore, we could not determine the timeliness of their submission

25 In our judgment, the failure to enforce the timely and accurate submission of FSRs and Progress Reports compromises the OJP s ability to ensure the proper use of grant funds, and increases the risk that the OJP will fund projects that are ineffective or failing to meet their objectives. OJP can help address this issue by providing grant managers with training about the submission of timely and accurate reports, allowable costs, grant monitoring, and grant closeout procedures. Another contributing factor to the weaknesses we identified is that not all of the key elements for monitoring grant activity have been implemented in OJP s automated system for managing grants. The OJP s Grants Management System (GMS) was initiated in December 1998 as a pilot program to streamline the solicitation, application, and award of grants. If it functioned at its full capacity, the GMS should provide onestop, full life-cycle support for all of the OJP s grant management efforts. This, in turn, would improve efficiency of grant monitoring efforts, improve access to information, and enhance search and reporting capabilities. While the OJP has mandated that the GMS be used by its various components, several of the modules of the GMS were not fully operational during our audit period. At the beginning of our audit, we were told by OJP officials that the GMS was being implemented in phases and that it would be fully functional by the end of However, we were informed that the enhanced GMS, which will include all modules to manage grants from beginning to end, is not scheduled to fully operational until September 30, In our judgment, the OJP s lack of systematic data to support grant management monitoring efforts is attributable, in part, to the lack of full GMS implementation. 26 Recommendations: We recommend that the OJP ensure that: 1. Grant managers receive annual training on OJP s requirements governing the submission of timely and accurate reports, allowable costs, grant monitoring, and grant closeout procedures. 2. The GMS is brought up to full functioning capacity as soon as possible and grant managers are trained to utilize this system. 26 In April 2004, grantees had the option of submitting their FSRs electronically through the web-based SF 269 application. However, with the first reporting period in FY 2005, all grantees are required to submit their FSRs electronically

26 2. PROGRAM PERFORMANCE The OJP is not collecting sufficient data to measure the performance of TA&T grants. Further, the OJP does not play a role in developing grantees performance or outcome measures for program evaluation purposes, nor does it have specific requirements that grantees must adhere to in developing performance measures. As a result, for the 21 grants that we audited, it was not possible to assess the impact of the TA&T program and determine whether the grants were achieving their intended purposes. According to the OJP, grant evaluation assesses the effectiveness of an ongoing program in achieving its objectives, relies on the standards of project design to distinguish a program's effects from those of other forces, and seeks to improve programs through a modification of current operations. Program evaluations are critical because they can be used to improve existing programs and provide policymakers and program managers with information for future program development. In addition, evaluations are used to assess how well programs have been implemented, and the extent to which funded activities have achieved their stated goals. Program evaluation is especially important to the Department of Justice because, through the OJP, it administers over $6 billion in grants. Without proper evaluation, the OJP cannot determine whether the grants it awards are an appropriate use of Department funds. In addition, program evaluations provide policymakers and managers with information about which programs are successful and which programs are inefficient. The OJP is responsible for collecting data to report on performance measures and for evaluating the performance of all programs. OJP officials told us that in its solicitations, applicants are notified that they are required to collect and report data that measures the results of their grant(s). However, we found that for the 21 grantees audited, the OJP did not collect and report the appropriate data to measure program results. Moreover, the grant files we reviewed showed no indication that the OJP Grant Managers participated in developing program measures. Grantee Evaluation Methods We determined that the OJP relies on grantees semi-annual categorical Progress Reports to determine if projects have been successful. Although these reports give the OJP an outline of grantees activities, productivity, and self-assessment, this method of evaluation may not

27 produce definitive results. Moreover, grantees self-assessments cannot be considered objective measures of accomplishment. In addition, agencies that fund their own evaluations can be in the position to practice undue influence that jeopardizes the objectivity of the findings. For example, an agency funding an evaluation of itself may select an evaluator who is likely to produce the results desired by the agency. Our review of 21 TA&T grants indicated that grantees generally perform self-assessments through participant evaluations. For example, some grantees conduct training for criminal justice practitioners addressing new criminal justice issues. At the conclusion of the training, grantees might request that participating practitioners complete an evaluation form to assess the training. The grantee then compiles and summarizes the information from all of the evaluation forms in an effort to measure the success of the training provided. We consider this an insufficient form of evaluation because there is no assurance that respondents will give this kind of questionnaire more than cursory attention or provide candid responses. In our judgment, in addition to the self-assessment, grantees should use outside consultants (following the methodology described in the next paragraph) to evaluate their presentations and provide specific commentary to the grantees addressing how they could improve their training. We also determined that the OJP does not work with its grantees to develop useful program evaluations. We asked the TA&T grantees in our sample to respond to a questionnaire about program evaluation. Twenty of the grantees stated that the OJP did not play a role in developing performance or outcome measures after making the grant award. In addition, we found that the OJP has no specific requirements to which the grantee must adhere in developing performance measures. We believe this lack of specific requirements results in the OJP having insufficient data to measure program performance. In the 21 grants we audited, the OJP did not have the necessary information to determine whether the program was successful in meeting its intended purpose. 27 When we discussed the OJP s lack of a formal evaluation of grantee success in implementing program objectives and goals, we were told by senior BJA and OJJDP officials that OJP does not require grant managers to formally evaluate the success or failure of a grant. Instead, the officials said that the OJP relies solely on the Progress Reports, even though the reports almost always indicate the grant is achieving its stated objectives. Generally, grant managers review grant files before 27 See Appendices V and VI for grantee evaluation methods